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tv   Your Money  CNN  May 10, 2014 11:00am-11:31am PDT

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didn't perform. poor combine, poor senior bowl. >> it's a results game. results game. when he comes out, he made people aware. look at me, look at me. when they did take that look at him, combine, senior bowl. the numbers didn't add up. so, that's the question. >> pressure's on. clock is ticking. i'm sweating for him. i am nervous to him. chris, joe, good to see you. i'm fredricka whitfield. thanks for being with us this afternoon. "your money" starts right now. big business of the reprehensible kind. i'm christine romans. this is "your money." how does the terrorist group that has horrified the world, boko haram, make its money? [ speaking in foreign languag ] language ]. >> this problem isn't new in nigeria. 26% of the world's kidnappings has in that country. on the black market, girls like
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those taken in april can be sold across the border for amounts ranging from $4,000 to $50,000. while foreigners can fetch hundreds of thousands of dollars in ransom. our own business correspondent zain asher knows well having attended school in nigeria. our globe economic analyst is in nigeria for the world economic conference on this week. a conference once meant to shine a light on nigeria's emerging economy, now making quite a different impressions. zain, start with you. nigeria is now africa's largest economy having overtaken south africa, fueled by the export of natural resources, like crude oil. with 37.1 billion barrels of proven crude reserves, a top opec producer, how does boko haram effect this growing economy? >> christine, listen, the cost of security, the cost of rebuilding is the give lent of 2% of the country's economic. talk about the economy in
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northern nigeria where a lot of this is going on. completely crippled by this. factories and stores closing down. people not going to school. so not only it affects small businesses but people's ability to provide for their families. number one. you're passionate about education. boko haram are against western education. you have people not going to school, because they're too afraid. the country's economic future lies in the education of its people. >> absolutely. >> so what is going to happen to nigeria middle class, 20, 30 years from now if you have all of these school children not going to school because they're too afraid? >> unbelievable. investors, how concerned are they about what's going on? ironic there's a conference happening now that you're reporting on at a time when the international focus is not for a development but for human rights, the most basic dees saens. >> absolutely. you know, interesting the two are very much connected here. the world economic forum started with a moment of silence for these girls. i've been talking to local
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investors, foreign, western are investo investors, all concerned about the government's inability to provide basic security. oil deal, big financial deals will probably continue to go through but a lot of companies are planning on a rising african middle class, meaning girls staying in school. people becoming entrepreneurs thp this growi this growing, rising africa we've been hearing about if they can't guarantee basic security that growth story comes into real question. >> zain, the fact 1,500, there have been, zain, 1,500 deaths or abductions in the first quarter of the year alone, and until the world was shining a light on this, 200 girls, that was sort of business as usual. >> right. >> in this country. how does boko haram get its money? >> okay. so pretty much any illicit activity you can think of. bank robbery, kidnapping people, holding them ransom. might kidnap foreigners, hold
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them for ransom. but you know, you have this situation now in nigeria where boko haram, the insurgents, terrorists, are better armed and equipped than the nigerian military themselves. i want to make one thing clear. something i'm passionate about. anytime you have extremism, the root cause is always poverty. youth, unemployment in nigeria, 40%. i honestly believe if the young men felt they had other ways to field their families they wouldn't be joining groups like boko haram. >> and what if they can solve, or even get ahold of security issues in the north part of the country, what could happen to the economy there? i mean, the economy could keep growing. right? >> absolutely. africa has so much going for it. nigeria in particular. 60% of the world's airable land is in this continent. huge mineral resources. agriculture could boom. they could go through a green revolution, but it requires security for that, and it's interesting. i had an interview with africa's
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richest man while here, and he said basically we've got to create more jobs, because if we don't, even if we get rid of boko haram, another group like that will take its place. >> thank you so much for that. also, zain asher. thank you both. coming up, the most controversial story in u.s. education knew. common core standards. parents, kids, celebrities, politicians, everybody's angry about the new tougher standards. is it time to rethink common core, or are we just coddling u.s. kids to the detriment of their ed jasion get all your favorites all day, everyday.
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what are you waiting for? (vo) celebrate this memorial day with up to 40% off hotels at travelocity. (gnome) go and smell the roses. kids feeling overwhelmed. parents tearing hair out, even bipartisan bashing. at least washington can agree on something, and comedians, they're having fun as well. what's not funny, all of the above are talking about the new education standards meant to transform america's classrooms. the idea behind the common core is noble. replace a hodge botch of state standards with one set of rigorous national standards, but implementation has been messy. raising this question.
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have we failed our kids again? [ chanting ] >> reporter: protests by parents and students, fodder for late-night comedians. >> it turns out common core testing prepares our students for what they'll face at adults. pointless stress and confusion. >> reporter: 44 states adopted new english and math standards known as the common core outlining what students in every grade should know for future success. new york is one of the first to test children in grades three through eight. >> honestly, seeing these tests was appalling. >> reporter: at ps3. 21 in brooklyn, the principal says the english exam given by new york state was long and confusing. >> what was being tested had no bearing on whether children are really great readers or not. and that felt so wrong. >> reporter: she wants the state to make the test public, and so do parents. >> when i hear that the material isn't appropriate, i want to
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know what that means. i can't see what my fourth grader was being tested on. it's a problem for me. [ applause ] >> reporter: despite protests, new york state says it can't release the test, because it can't afford a whole new one next year. but across the country, parents say the rollout of the common core is stressing kids out. >> we feel like the pressure's too much. >> puts entirely too much stress on the teachers, puts entirely too much stress on the students. >> reporter: stress on students and on parents, too, trying to help with homework as the curriculum transitions. this math work sheet went viral after a frustrated north carolina dad posted it on facebook. he wrote on the bottom, "i have a bachelor of science degree in electronics engineering. even i cannot explain the common core mathematics approach." a similar rant on twitter saying his kids used to love math. now it makes them cry, but education secretary arne duncan stands firmly behind higher standards. >> there have been bumps.
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i promise you, there will continue to be bumps and hurdles to jump over. if we can stay the course over t the next couple of years and as a nation move to higher standards we will change education in a profound way. >> reporter: profiled in cnn's "chicagoland" the principal is a fan. >> tries to raise expectations across the board. incredible thinking skills. >> reporter: back in new york, common core standards aren't the problem. >> we're not complaining about high standards. we're complaining about the nature of the test. >> reporter: testing that at this point means more for teachers than students. new york state says test scores simply measure student progress, and have no bearing on grades, but for teachers, student performance accounts for 20% of their evaluation. make no mistake, you're going to hear more about common core, whether or not you have a child in the classroom. pedro is an education professor at new york university.
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thank you for coming here. i want to look at this math problem that went viral. jackson, a fictional students use add number line to soft 427 minus 316. find his error and write jack a letter telling him what he did right and when he should do to fix his mistake. parents freaked out about this. said this was too hard for a grade schooler. >> it is hard. and -- >> are we coddling our kids or should they know how to do that? >> what they should be able to do explain their reez reasoning. that's what the common core is trying to get at. the kind of skills when they get them in fact helps them when they get to college. too many kids right now are not sufficiently prepared for college. the whole point. >> the problem. >> right. >> the people who got together to fix this are employers and colleges who says the kids turned out of the public school system don't have the skills we need in college and the workplace. now the implementation is the tough part. >> exactly. that's where we're stuck. what we've done, and nor
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epitomizes the problem. started with the test. the tests have bon been sufficiently field tested so that we could work out the kirngs and tkirng kinks and the tests are driving the cruick lim providing stress in students teachers and families. the companies making profit out of this right now. >> is there a coddling we have, maybe, we don't want to admit are kids aren't as smart as we think they are? arne duncan had to walk back comments he made. white suburban moms don't want to admit their kids are not above average. >> i think it's possibly part of it, too. people want to see their kids doing well. they love those stickers. my child is an honor student. but we want to know that our kids are actually prepared. we have evidence from the national assessment of educational progress we haven't made much progress. >> i can show you those. shows 12th graders made no progress in math and reading in
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the last four years. we know they have to do better. >> under 50% of kids grade waiting from high school read at a proficiency level fmplgts it doesn't hurt you're not changing anything in education. an interesting viewpoint to take. it's going to hurt if you're going to raise starnndards. >> right. shouldn't be easy. too many kids sailed through schools with as and haven't been pushed hard. >> a lot of my friends with kids in second grade, kindergarten, christine, you've studied this andeducation. what do they with about common core? good or bad? i'm asking you that question? >> look at the standards and say there's something wrong with the standards. the standards make a lot of sense. things kids should be able to do. the problem is, are we putting the curriculum in place, preparing teachers and are we developing tests that will allow us to get a good sense of what our children can do. the angst to these three questions is right now, no.
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we haven't done enough. >> thank you. good to see you. >> thank you, christine. can you do third grade common core math? won't put you on the spot. dim the lights, lock the door. don't tell your kids what you're doing and check out cnn for sample questions like this one, which measures best represents the distances from zero to n on the line below? the answer, and more core conundrums on cnn money. coming up, winter coats back in the closet, feels the thaw. why not an economy warming up as well? the truth behind why you and your government leaders aren't talking about a strengthening economy. next. your education is built to help move your career forward. here's how: we work with leading employers to learn what you need to learn so classes impact your career. while helping ensure credits you've already earned pay off.
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it's getting warmer and i
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don't just mean the spring. the economy is thawing. though you may not be feeling it. the strength of the u.s. economy is for real but an underlying crisis of confidence hiding that strength? housing. mortgage rates hit a 2014 low. 4.21 percent for a 30-year fixed. buyers aren't rushing in and banks don't have the confidence to really, really lend aggressively. and some potential sellers aren't confident enough to put their home on the market. that's keeping inventories tight. plus younger americans, they're pretty happy paying rent, not mortgage payments. second, look at the stock market. the dow trading mere record highs again and the broader market surged from february low, but only half the country is invested and a lot of those people are worried about a pullback into the summer. finally, the unemployment rate doesn't look bad. the lowest level since september 2008. but the labor force participation vat awfrate is aw. fewer confident enough to enter the workforce. a crisis of confidence holding
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back the economy or is the economy better than you think? the professor at harvard university and a former chief economist at the imf. people still aren't feeling good about their money. they aren't. look at a cnn/orc poll, 62% of americans think economic conditions are poor. what will it take to make people feel better about the economy? >> time. we got hit by a monster financial crisis recession, worst since the great depression and they're right. we may be growing again. we actually are growing pretty well again. >> you think show? >> yes, but from a low base. we just caught up on a basis from where we started so, yeah. they're feeling it. obviously, people who lost their jobs, who pulled out of the labor force, a rough period. maybe better but after a long time. >> from a very low base. calling it the reaction among the washington and economists sort of the kaushcautious coali. everybody is caution even when seeing strength. even janet yellen is concerned
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about housing, about long-term unemployment. but what will it take, i guess, to get that caution out of the way? could that be holding us back? if we remain too cautious rear not inspiring confidence businesses need to hire and lend? >> a big piece of that. that's the leg that hasn't been turning, what hasn't been working, but it is picking up. you know, the credit is loosening. it's not loosening enough yet that we're feeling norm's, but it is changing. you know it is getting better, but a long reallying process. >> better than we think? the economy? >> i think the economy is better than we think. we're a bit shell shocked. it has stabilized. europe doesn't look like it's falling apart. the government looks like it isn't going to shut down the economy. we're seeing unemployment come down, and some people, though long-term unemployed are coming back. this thing just doesn't go away overnight when you're xpeevs experienced what we have? >> start investing and hiring again would be great.
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>> i hope so. >> ken, good to see yyou. what's the price of being cool? what apple is paying for beats, headphone and music streaming service started by rapper dr. dre and music's mogul jimmy iovene. this video appeared on facebook. >> billionaire boyz club for real, homey. huh? physic fix your face. fix your face. oh, the [ bleep ] forbes list just changed. >> tyrese gibson. don't forget about dre. despite beatz popularity, dissing the deal saying it doesn't make sense with apple. then again, polaroid didn't evolve from the camara and sony not from the walkman. the company bought 24 companies in the past 18 months. regardless, the move is so 2014. apple buys beatz and the news is confirmed by a video on facebook. move over facebook.
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here comes ali baba. commerce giant, filing for a $1 billion public offering in the u.s. don't let the number fool you. it's likely to go up. this ipo could be bigger than facebook's $16 billion offering. maybe even the largest ipo of all-time. it's time for the "buzz." 90 seconds on the clock. the reason we have yahoo! here, yahoo! is a huge stake in alibaba? >> more than 20%. had been a lot of excitement about what yahoo! cashing in on alibaba would door for its shares. look here. filed tuesday. stock plunged wednesday. i think a classic case of sell the news. there weren't enough details i think in the ipo filing to get yahoo! investors excited again. >> it's a real entree for ali baba into the u.s. market, though? >> definitely. interesting to see how the company does and whether or not they expand into the u.s., too. >> twitter. another big mover this weekend by mover i mean loser. >> yeah. twitter is just getting its butt kicked, really, in the market right now. shares plunging because of the
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lockup expiration. all the insiders that were able to start selling, started doing so. look at how high it was and then fell, i think a lot of people looked at that ride up and said, uh-oh. we're now seeing momentum going in the other direction. >> and reality. right? it's not making money. they don't like what they see underneath the -- >> this isn't facebook. a profitable company with 1 billion users. twitter doesn't have that scale and that's why people are concerned. >> a terrible week for whole foods. >> warned about its outlook three times in the past few months as i said in the video a few days ago what is going on here, you can buy tofu at other places now. it's no longer unique. >> and buy it cheaper at other places. >> trader joe's, walmart and kroger. organic. it's a real market, used to get kiawah were only at whole foods. now anywhere. >> if you can go to walmart for it, that's trouble for whole foods. >> a buy here? >> be wary. >> paul, thank you. coming up, for $1,500 you can buy this --
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google glass. for less than 1/10, you could buy all the parts. we take apart the hottest wearable on the market, next. if you're living with moderate to severe crohn's disease, and it feels like your life revolves around your symptoms, ask your gastroenterologist about humira adalimumab. humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. in clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection.
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ask your gastroenterologist about humira today. remission is possible. humans. even when we cross our "ts" and dot our "i's", we still run into problems.
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android phones, explains information, takes pictures, video among other things. price tag, $1,500 if you can get one. parts are much less. te brock it down. ty place screen, $3. camera costs about $6. the most expensive part is the processor. that's about $14. there you go. overall add it together, parts cost just $80. that's right. it's $1,500 to buy. going google glass. this estimate is wildly off and costs significantly more to produce. for comparison, the parts in an iphone 5-1, $200. sells for $650 without a contract. check it out at cnn "money ". give me 60 seconds on the clock. it's "money time." think your ipad or iphone is
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hook-proof? maybe not. a security expert says apple's encryption of e-mail attachments is flawed. leaving your private files you havierable. apple says, it's aware of the problem. >> send me to college. >> 20 years and 1 million babe babies later, launching a match-made scholarship, prizes for kids whose parents met on the dating site. aid this, interest rates on government student loans rise near been a full percentage point this fall about $2,000 more in interest over four years of college. rates are rising because they're tied to the market for treasury bonds, and more debt equals more misery. a new study find students graduating with no debt, seven times more happy than those with more are than $40,000 in loans. and after banning donald sterling for his offensive comments about mine ours, the nba is el selling we are one t-shirt. money raised go to organizations
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tra moment tolerance. thanks for spending saturday smart with us. take a moment and auto record "your money" and you will never miss the money news that matters to you's set your vv dvr. happy mother's day. "cnn newsroom" starts, right now. hello everyone. i'm fredricka whitfield. here are the big stories we're following now in the "cnn newsroom" -- a terrifying sight at a virginia festival. a hot air balloon catching fire and now search crews are combing a wooded area looking for the wregage. wreckage. we'll take you there. a near nightmare in the sky. a passenger plane almost crashes into a drone. a big question now, how safe are you when you fly on commercial jets? and a worldwide campaign to bring back our